1. Bluebird Sand, LLC - Due Diligence Proposal
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Bluebird Sand, LLC - Due Diligence Proposal
Bluebird Sand, LLC is a sand mining plant currently servicing the needs of the oil and gas industry
utilizing hydraulic fracturing in Northern Arkansas. This proposal has been created for evaluation of my
services in creating a business plan to help determine the interest of purchasing the operation by
Devonwood Partners, LLC and to carry Bluebird Sand, LLC operations into the future.
Due to the fact that I have not been personally involved in the decision making that has taken Bluebird
Sand, LLC to this date, my proposal will only be as accurate as the information supplied to me by other
parties involved.
1) Examine Bluebird Sand, LLC Operational Equipment
a) Equipment (EQ) Current Production
b) Ensure Proper EQ in Place
c) EQ Capital Expenditures - Future
d) EQ Capacities – Current/Future
2) Financial Information (Expenses & Revenue)
a) Determine operating costs associated with running current EQ
b) Determine operating costs associated with any Capital Expenditures
c) Sales
i) Current
ii) Projected
iii) Short/Long Term Contracts
iv) Specialty Products

2. Bluebird Sand, LLC - Due Diligence Proposal
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d) Projected Financials
3) Personnel
a) Brad Smith – Execution of Bluebird Sand, LLC Business Plan
b) Identify Positions for Operation of Plant
c) Identify Management Positions
4) Reserves/Mining
a) Confirm Reserves in the Ground
b) Mining Plan
I believe it is essential to perform this due diligence on the Bluebird Sand, LLC operations to determine
the viability and profitability for Devonwood Partners, LLC. I’m thankful for this opportunity and look
forward to executing a business plan for success.
To perform the due diligence outlined above, but not limited to in this proposal, I will require a fee of
$35,000. This fee does not include any outside consultants that may be required to complete a business
plan.
Examples of outside consultants are: Quality Testing Lab, Engineered Plans of Plant, Geologist,
Surveyor, Environmental, etc. I believe that most of the work has already been done for the due
diligence, but to have a few things confirmed I estimate costs for outside consultants to be less than
$5,000.
Upon agreeing to this proposal, I will require a $15,000 payment once this proposal is accepted and the
balance upon completion. I anticipate the plan will be completed within 60 days, depending on the
cooperation of the parties involved.
Sincerely,
Brad Smith